If Price Is Greater Than Marginal Cost and Output Is

question 84

Multiple Choice

If price is greater than marginal cost and output is infinitely divisible, then

• A)decreasing output decreases revenue less than it decreases cost.
• B)increasing output increases revenue more than it increases cost.
• C)increasing output increases revenue less than it increases cost.
• D)decreasing output increases revenue more than it increases cost.
• E)increasing output has no effect on revenue and cost.

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Definitions:

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables, ranging from -1 (perfect negative correlation) to +1 (perfect positive correlation).

Expected Return

The expected return is the anticipated profit or loss from an investment over a specified period, based on historical or projected rates.

Standard Deviation

A statistical measure of the dispersion or variability of a set of data points, often used in finance to quantify the risk of an investment.

Beta

A measure of a stock's volatility in relation to the overall market; a beta above 1 indicates higher than market volatility.